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What is an MVNO

21 August 2009 No Comment

The industry is going through stages characterized by alphabet soup nomenclature, including MVNO, roaming virtual networks mobile operators (rMVNO), and mobile virtual network enabler (MVNE). Most industry observers believe that over time, consolidation will take place on the market, while others will go out of business (examples are Disney Mobile and Helio in the USA and easyMobile in Europe).

One specific sector of MVNO operations focuses on international, rMVNOs. These are distinct from domestic MVNO agreements and are intended to provide transparency of international tariffs.

According to Pyramid Research, there are three main categories of MVNEs, according to their MVNO solutions:

Aggregator MVNEs
these offer consulting and integration services and have bundled all of the back-office network components through alliances. These promote their ability to quickly provide order-to-cash solutions to MVNOs. Companies include Ztar and TMNG.
Aggregator MVNEs with their own platforms
this includes aggregators which have developed one or more back-office solutions internally, and have complemented them with partnerships to provide end-to-end enablement services. Companies include ASPIDER Solutions, Qualution, and Elephant Talk.
Specialised enablers
these offer only parts of the back-office network such as messaging platforms, data platforms and billing solutions. They are not solely focused on the MVNO market. Companies include ASPIDER Solutions, Elephant Talk, Tyntec, LogicStar and Convergys.

The voice-centric, operationally light MVNOs of today have generally worked with an aggregator MVNE that managed the limited back-end operations on behalf of the MVNO. The new breed high-end, strong brand MVNO is transforming the dynamics of the MVNE market. Besides leveraging their own existing assets, they choose to own more of their platforms, particularly their logistics, distribution and customer care systems. They still work with MVNEs, but they tend to opt for specialised ones with best-of-breed solutions and a strong reputation.

Exploiting the wireless IP networks competing infrastructure bandwidth with low traffic due to the lack of Mobile Driven Content, such as GPRS, EVDO, along with specific domain knowledge software applications with specific content, other Global Service or specialized application based MVNO are also growing.

These companies are pushing their own business model as content driven MVNO. They usually host their services in one location, and provide access to their content in different countries via specialized Mobiles and existing IP coverage.

For further Information understanding mvno

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